Salim Mehajer’s Auburn council close to end after ultimatum

Allegations councillors used their position to gain ‘significant outcomes’ for themselves and associates face scrutiny.

21/01/2016: Salim Mehajer at his home in Lidcombe on Thursday. The NSW Government has moved to sack MehajerÕs Auburn Council, giving them two weeks to argue why they should not be suspended. Hollie Adams/The Australian

It started with Salim Mehajer closing down his street for his wedding. It’s now likely to end with the government closing down his council.

Yesterday the NSW government gave Mr Mehajer’s Auburn City Council in Sydney’s west two weeks to argue why it should not be suspended, as it called a public inquiry into allegations councillors were misusing their position to “allegedly obtain ­significant planning outcomes for themselves, associated ­companies, relatives and fellow councillors”.

Mr Mehajer, a property developer and councillor whose ostentatious lifestyle and numerous run-ins with authorities brought the issues of Auburn council to public attention, said yesterday he welcomed the inquiry.

“This will give the opportunity for council to simply justify the negative press that it has been experienc­ing over the past few months,” he said.

“It is a great idea to have the inquiry undertaken, as any wrongdoings by a particular councillor or member of the council staff should be sacked immediately. The council and greater community should not suffer due to a consequence of other members’ poorly guided actions.”

One councillor, property develo­per Ronny Oueik, said he had done nothing wrong. Asked if his property interests had bene­fited him, he said: “What’s wrong with that?”

Mr Mehajer benefited when Auburn council approved height increases to three of his developments, allowing him to build an additional 14 apartments in each tower, worth an estimated $30 million.

In two of the developments, extensions were approved despite­ the council planning staff recommending the applications be rejected, and them exceeding the height limits for the area.

The increases were supported by Auburn Mayor Le “Lilly” Lam, who is both the sister-in-law and long-time business partner of Minh Hua, a property development business partner of Mr Mehaje­r. She did not disclose any conflict of interest, saying she had no idea that Mr Hua was a business partner of Mr Mehajer when she approved the developments.

Mr Oueik said it was the Depart­ment of Planning that was responsible for rezoning land, not the council.

He said his development applica­tions had been approved by a joint regional planning panel, not the council, and he had declared his interests in property “from day one”, in accorda­nce with the law.

“We live in Australia here,” he said. “It’s not Zimbabwe.”

He said that councillors’ action­s were under constant surveillance, and if one did anything wrong, “the staff will dob you in”. People were too willing to critic­ise those who were willing to buy land and build on it, he said.

“What’s wrong with developers being on councils? We put so much effort and ideas into the community, and the community benefits.”

He complained about others on the council, saying they were “f. king dole bludgers”.

NSW Opposition Leader Luke Foley, whose Liberal oppon­ent at the last election was Mr Oueik, said: “The sooner that Auburn council is put out of its misery the better. Sadly, this council has made Auburn­ a national laughing stock.”

Councillor Irene Simms, who has campaigned for years to expose the dealings of the council, was bittersweet about the state government’s action. She is likely to lose her position.

“If this is the price we have to pay to get it cleaned up, then it’s a price I’m prepared to pay,” she said. “But at a personal level I’m disappointed that the good gets stood down with the not so good.” She said she was “thankful” to Mr Mehajer for attracting media attention.

Ms Simms is one of the “poor four” who provide the opposition to the “super six” on the council.

“The worse thing they could have done is to allow him to stay Deputy Mayor, after all that had happened, and allow him to stay in the spotlight,” she said.

Local Government Minister Paul Toole said he had “serious” concerns about Auburn council’s “perceived decision-making in relation to planning and ­development matters and the appearance that those decisions may have delivered an inapprop­riate benefit to some councillors”.

Richard Beasley SC has been appointed to conduct the public inquiry.

There will also be an inquiry into North Sydney Council, to be undertaken by Thomas Howard SC. Mr Toole said North Sydney councillors had repeatedly failed to address serious performance issues caused by poor relationships between them.